It’s better in your pocket than theirs
There are a few things you can do to insurance premiums down. By far the biggest thing you can do is to shop about. When it comes to car insurance – Loyalty Does Not Pay.
Your insurer should contact you a month before your policy is due to renew. When you get this you should check some comparison sites like Compare The Market, Money Supermarket or Go Compare. If you haven’t switched in a few years you could save £100s!
If you are a keen bargain hunter and look every year, there are some other tricks you can use. Insurers use a closely guarded system for calculating how much of a risk you will be. They don’t make this public but they have been using it for long enough that there are a few we’ve managed to glean over the years.
- Add another driver – if you have another good driver on your policy this can reduce your premiums by over £70.
- Check your mileage – most people just use the default on the form when setting up their policy. If you don’t travel far in your car, make sure you update this on the form and your premium can drop by over £40.
- Don’t assume TPF&T is the cheapest – most people assume that by getting third party only cover that they will pay less. But for whatever reason, insurers often think these types of policies will cost them more money, so they up the premium.
- Check your job title – this one has us a little stumped, but how you list your job title can affect the price you pay for insurance. You can’t out and out lie about your job (if you do your insurer may withhold insurance you you could be left with the full bill of any claim you make) but you can try different variations of your job title. Thankfully you don’t need to try this yourself. The helpful folk over at Money Saving Expert have done all the hard work for you. Just pop over to their site and you can find the right way to list your job here.
The long and short of it is, if you spend a little time once a year, you can save enough money to have a really nice Christmas or a lovely weekend city break somewhere nice. So next time your policy comes up for renewal – make sure that money stays in your bank account and not in your insurer’s.